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On July 5, 2017, Alpha Corp

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On July 5, 2017, Alpha Corp.purchased a call option for $2,400, giving it the right to buy 1,000 shares of Omega Corp.for $40 per share.On August 18, 2017, when the option value is $12,000, Omega settles the option for cash.The entry on Alpha's books to record the settlement is On July 5, 2017, Alpha Corp.purchased a call option for $2,400, giving it the right to buy 1,000 shares of Omega Corp.for $40 per share.On August 18, 2017, when the option value is $12,000, Omega settles the option for cash.The entry on Alpha's books to record the settlement is

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